Bear Market

The speaker discusses why he is very excited about the current bear market.  He is a value investor and believes that major bargains are available in the market.  His goal is to locate very solid companies with very good business models and balance sheets.  

This investor is not concerned with the companies stock price; rather, he focuses on the fundamentals of the company which will eventually reflect in the stock price.  He believes that being able to reinvest dividends in these companies over a long period of time will offer a great return.

During the crash in October of 2008, The speaker from RBC Wealth Management believes a bottom in the markets may not be far off and suggests that investors should not be panicking.  He believes that this bear market move is not the beginning of a new bear market; rather, the continuation of one from 2000. 

Investors should remain defensive and only hold what they can sleep at night with.  He mentions some very rare occurances; dividend yields are higher than the 5 year treasury notes.  Sentiment readings are very oversold and at new oversold levels and blue chip dividend paying companies are getting very attractive.  He still believes that financial stocks are going to take a hit. 

This video is from November of 2008 and the speaker discusses how he believes that the market entered into a secular bear market and walks through the charts of the major markets.  He suggests that he still believes that the 2002 lows in the S&P 500 will be hit in the future.  At this point, long traders may dip their toe into the market but any significant amount of money should not be invested until a firm bottom is put into place and a reversal is evident on the charts.